Intangible Assets, net

3 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

A reconciliation of the activity affecting intangible assets, net is as follows:


(In thousands)	Indefinite- Lived Trademarks		Finite-Lived Trademarks and Customer Relationships		Totals
Gross Carrying Amounts
Balance — March 31, 2023	$	2,168,902	$	411,118	$	2,580,020




Effects of foreign currency exchange rates	(671)		(145)		(816)
Balance — June 30, 2023	$	2,168,231	$	410,973	$	2,579,204

Accumulated Amortization
Balance — March 31, 2023	$	—	$	238,127	$	238,127

Additions	—		4,953		4,953

Effects of foreign currency exchange rates	—		(13)		(13)
Balance — June 30, 2023	$	—	$	243,067	$	243,067

Intangible assets, net - June 30, 2023	$	2,168,231	$	167,906	$	2,336,137

Amortization expense was $5.0 million and $5.6 million for the three months ended June 30, 2023 and 2022, respectively.

Finite-lived intangible assets are expected to be amortized over their estimated useful life, which ranges from a period of 10 to 25 years, and the estimated amortization expense for each of the five succeeding years and the periods thereafter is as follows (in thousands):


(In thousands)
Year Ending March 31,	Amount
2024 (remaining nine months ended March 31, 2024)	$	15,433
2025	18,906
2026	16,956
2027	15,363
2028	13,017
Thereafter	88,231
	$	167,906

Under accounting guidelines, indefinite-lived assets are not amortized, but must be tested for impairment annually, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the asset below the carrying amount. The date of our annual impairment review was February 28, 2023, and we recorded impairment charges to intangible assets of $321.4 million in our March 31, 2023 financial statements. Additionally, at each reporting period, an evaluation must be made to determine whether events and circumstances continue to support an indefinite useful life. Intangible assets with finite lives are amortized over their respective estimated useful lives and are also tested for

impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable and exceeds its fair value.

We utilize the excess earnings method to estimate the fair value of our individual indefinite-lived intangible assets. The assumptions subject to significant uncertainties in the analysis include the discount rate utilized in the analysis, as well as future sales, gross margins, and advertising and marketing expenses. The discount rate assumption may be influenced by such factors as changes in interest rates and rates of inflation, which can have an impact on the determination of fair value. Additionally, should the related fair values of intangible assets be adversely affected as a result of declining sales or margins caused by competition, changing consumer needs or preferences, technological advances, changes in advertising and marketing expenses, or the potential impacts of supply chain constraints, labor shortages, or inflation, we may be required to record impairment charges in the future. As of June 30, 2023, no events have occurred that would indicate potential impairment of intangible assets.